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Q1/3-MONTH3MONATSZWISCHENBERICHT INTERIM REPORT 20172018 OHB SYSTEM SELECTED FOR ESA SCIENTIFIC RESEARCH MISSION PLATO OHB NOW ALSO WITH A KEY ROLE IN THE SECOND EXOMARS MISSION MT AEROSPACE AWARDED CONTRACT FOR THE PRODUCTION OF A FURTHER TEN ARIANE 5 SHIP SETS FIRST ARIANE 6 TANK SHIPPED BY MT AEROSPACE ON TIME TO ARIANEGROUP OHB SE Q1/3-MONTH INTERIM REPORT 2018 OHB SE AT A GLANCE OHB SE is a European aerospace and technology group and one of the most important independent forces in the European space industry. With more than 35 years of experience in developing and executing innovative space technology systems and projects and its range of specific aviation/ aerospace and telematics products, the OHB Group is superbly positioned to face international competition. Over the last few years, it has broadened its geographic footprint within Europe and now has facilities in many important ESA member countries. These strategic decisions on locations allow the Group to participate in numerous European programs and missions. The two “Space Systems” and “Aerospace + Industrial Products” business units reflect the convergence of these activities and the focus on specific core skills. The “Space Systems” business unit focuses on developing and executing space projects. In particular, it is responsible for developing and manufacturing of low-orbiting and geostationary satellites for navigation, science, communications, earth and weather observation and re- connaissance including scientific payloads. Reconnaissance satellites and broadband wireless transmission of image data form core technologies for security and reconnaissance. The explo- ration segment works on studies and models for exploring our solar system, primarily the Moon, asteroids and Mars. Its human space flight activities chiefly entail projects for the payloads and operations of the International Space Station ISS. 2 The “Aerospace + Industrial Products” business unit is primarily responsible for manufacturing aviation and space products as well as engaging in other industrial activities. In this area, OHB has established itself as a leading supplier of aerospace structures for the aviation and space industry; among other things, it is the largest German supplier of components for the Ariane program and an established producer of structural elements for satellites. In addition, OHB is an experienced provider of mechatronic systems for antennas and telescopes and is involved in several major radio telescope projects. OHB telematics systems serve the logistics industry around the world by offering efficient transport management and consignment tracking facilities. SPACE SYSTEMS AEROSPACE + INDUSTRIAL PRODUCTS OHB System AG, MT Aerospace AG, Bremen & Oberpfaffenhofen, 70 % 100 % Augsburg, Germany Germany OHB Italia S.p.A., MT Mechatronics GmbH, 70 % 100 % Milan, Italy Mainz, Germany LuxSpace Sàrl, MT Aerospace Guyane S.A.S., 70 % 100 % Betzdorf, Luxembourg Kourou, French Guiana Antwerp Space N.V., OHB Teledata GmbH, 100 % 100 % Antwerpen, Belgium Bremen, Germany OHB Sweden AB, OHB Digital Services GmbH, 74.9 % 100 % Stockholm, Sweden Bremen, Germany OHB SE Q1/3-MONTH INTERIM REPORT 2018 DEAR READERS, In the first three months of the year, OHB SE laid the foundations for the future. The Supervisory Board appointed Dr. Lutz Bertling and Kurt Melching to the Management Board to take over from Ulrich Schulz, who stepped down from the Management Board last year for age reasons, and also Dr. Fritz Merkle, who is leaving the Company in June. There was also a change in the Supervisory Board: Christa Fuchs stepped down from her position as chairwoman of the Supervisory Board, while Robert Wethmar was elected as the new chairman. The Group established two new subsidiaries in the promising areas of services and life sciences. OHB Satellitenbetrieb GmbH will be pooling the Group’s previous business in these areas, while Blue Horizon Deutschland GmbH will be stepping up activities in life sciences. Details of the most important event for the OHB Group’s operating business in the first quarter can be found in the section on material events occurring after the reporting date in this document: During the ILA Air Show in Berlin, OHB System AG was informed that its proposal for the PLATO scientific research mission had been selected by the European Space Agency ESA. This success is all the more significant as it marks the first time that OHB System will be participating in an ESA scientific research mission as prime contractor. The purpose of the mission is to discover and explore exoplanets (i.e. planets in other solar systems). Negotiations for the contract, which has a value of around EUR 297 million, are expected to commence in June. OHB System AG is continuing to participate as a subcontractor in a second scientific research mission aimed 3 at determining whether there is or ever has been life on Mars. Valued at EUR 103 million, the contract for the carrier module of the second ExoMars mission was awarded in March. The award of a study in ESA’s space position recognition programme will create the basis for further activities in this area. The Aerospace + Industrial Products business unit has gained a good basis for future business following the receipt by MT Aerospace AG of a contract from ESA for a study devoted to the design of commercial micro-launchers. In addition, MT Aerospace was awarded what is expected to be the final contract for the delivery of components for the Ariane 5, which will remain in operation until 2022. The transition phase, during which the replacement Ariane 6 will also be launched, commences in 2020. MT Aerospace will also be supplying key components for the Ariane 6. The company delivered the hydrogen tank, the first component for the upper stage of the future European launch vehicle, in April. At the end of the quarter on March 31, 2018, OHB SE companies had consolidated order books worth EUR 2,397 million, i.e. virtually unchanged over the end of 2017 (EUR 2,439 million). Given the high order backlog and the upbeat business performance at the end of the first three months, we assume that the Group’s net assets and financial condition will remain strong and reaffirm our full-year guidance for 2018. We project total revenues of EUR 1 billion, EBITDA of EUR 65 million and EBIT of EUR 47 million. Bremen, May 9, 2018 The Management Board OHB SE Q1/3-MONTH INTERIM REPORT 2018 OHB STOCK STOCK MARKET AT A HIGH LEVEL MANAGEMENT BOARD BUT EXPOSED TO THE EFFECTS AND SUPERVISORY BOARD OF POLITICAL UNCERTAINTY SHAREHOLDINGS The benchmark German equity index DAX en- tered 2018 at a high level of 12,918 points, reaching a new all-time high of 13,597 points March 31, 2018 Shares Change in Q1 on January 23, 2018 before losing subs- Christa Fuchs, chairwoman of the Supervisory Board 1,401,940 – tantial ground in the further course of the Professor Heinz Stoewer, member quarter. A low for the quarter of 11,727 points of the Supervisory Board 1,000 – was hit on March 26, 2018, equivalent to a Marco R. Fuchs, chairman loss of around 14 percent over the all-time of the Management Board 6,046,610 – high. This decline was triggered by mounting Dr. Fritz Merkle, member political uncertainty over the threatened of the Management Board 1,000 – trade restrictions between the United States, China and Europe as well as fears of an escalation of the Syrian conflict. Although DIVIDEND PROPOSAL OF EUR 0.40 the DAX was able to climb back up to 12,800 PER SHARE TO BE SUBMITTED TO by the beginning of May, the heightened THE SHAREHOLDERS FOR APPROVAL uncertainty and, hence, greater volatility AT THE ANNUAL GENERAL MEETING persisted. ON MAY 24, 2018 As in the previous year, the Management OHB stock also benefited from the January Board and the Supervisory Board of OHB SE rally in the equity markets, reaching an all- will be asking the shareholders to authorise 4 time high of EUR 49.75 on January 9, 2018 the distribution of a dividend of EUR 0.40 per and closing January at EUR 46.35. Closely share. tracking the indices, it bottomed out at EUR 35.20 at the end of the quarter on March 29, RESULTS OF SHAREHOLDER 2018. IDENTIFICATION ANALYSIS For the first time, we arranged for a detailed In the period under review, average daily trad- identification of our institutional and private ing volumes came to 26,177 shares (Xetra investors in the 3rd quarter of 2017 in order plus floor trading), substantially above the to intensify efforts to attract new investors previous year’s figure of 6,557. and to achieve closer relations with existing ones. TREASURY STOCK As of March 31 of this year, OHB SE’s trea- All told, it was possible to identify just under sury stock comprised a total of 80,496 96 % of all shareholders and shareholder shares, equivalent to 0.46 % of its issued groups: capital. 69.72 % held by the Fuchs family pool 12.96 % held by institutional investors 11.74 % held by private investors (11.50% in Germany) 1.05 % held by banks for trading 0.46 % held by OHB SE as treasury stock ANALYST RATINGS Bank Date Target Price Recommendation Bankhaus Lampe May 4, 2018 50.00 Buy equinet Bank May 4, 2018 40.00 Neutral Commerzbank May 3, 2018 30.00 Reduce HSBC Trinkaus & Burkhardt April 27, 2018 34.00 Hold DZ Bank February 27, 2018 48.00 Buy OHB SE Q1/3-MONTH INTERIM REPORT 2018 OHB STOCK PERFORMANCE OF STOCK FROM JANUARY 1, 2017 THROUGH APRIL 30, 2018 (INDEX-TIED) OHB DAX TecDAX 250 200 150 100 1/17 2/17 3/17 4/17 5/17 6/17 7/17 8/17 9/17 10/17 11/17 12/17 1/18 2/18 3/18 4/18 A detailed regional analysis of the institutio- participants were able to combine the capital nal investors shows that these are mainly market day with a visit to the ArianeGroup based in North America, continental Europe, halls.